Bank NPA may rise to 25-year high under severe stress, says RBI3 min read . Updated: 11 Jan 2021, 06:42 PM IST
- As the pandemic wreaked havoc on the economy, leading to job losses, borrowers delayed repayments or failed to repay altogether
- The capital adequacy ratio is projected to drop to 14% in September 2021 under the baseline scenario and to 12.5% under the severe stress scenario
The bad loan ratio of banks in India could rise 600 basis points (bps) to 13.5% under the baseline stress scenario or nearly double to 14.8% by September this year, under a severe stress scenario, taking it to a 25-year-high, the Reserve Bank of India (RBI) said on Monday.
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